On November 4, open interest in Bitcoin options reached a whole new level. When this happened, a more curious incident arose. On November 6, the open interest expires in $ 470 million. This is unusual, and typically, liquidity is concentrated monthly and quarterly.
Deribit currently has 75% open interest rate, followed by Bit.com with 13%. Ironically, on both exchanges, puts make up 65% of the leading theories. This ratio is the opposite of the overall market ratio of remaining Bitcoin (BTC) options, which favors call options by a wide margin.
Deribit BTC Call Options on November 6th. Source: Deribit
More specifically, the call options for 6050 BTC range from $ 13,500 to $ 14,750. Bit.com adds 1130 BTC, OKEx adds another 430 BTC. Hence, there is an immediate open interest of $ 114 million to support current levels.
The Deribit BTC put options expire on November 6th. Source: Deribit
Meanwhile, put options ranged from $ 13,250 to $ 14,750 at 4,700 BTC on Deribit, followed by 1,320 BTC on Bit.com and OKEx at 480 BTC. This results in immediate selling pressure of $ 98 million, including open interest in put options.
In fact, most of the puts have been used without market value. If the expiration date is less than 16 hours, the right to sell BTC at $ 12,500 or less does not matter. This does not include the 60% open interest rate on the $ 300 million investment option.
Therefore, when analyzed only to select an option close to market levels, there is a small error of $ 16 million in favor of the buying side. It looks like several big bear shops were carefully prepared for the American elections, which negatively affected the price.
Fortunately for buyers, the opposite movement seems to be taking place, resulting in the loss of short-term bearish alternatives.